CONNECTING EAST ASIA A NEW FRAMEWORK FOR I NFRASTRUCTURE A SIAN DEVELOPMENT BANK JAPAN BANK FOR INTERNATIONAL COOPERATION THE WORLD BANK Connecting East Asia: A New Framework for Infrastructure ASIAN DEVELOPMENT BANK JAPAN BANK FOR INTERNATIONAL COOPERATION THE WORLD BANK © 2005 Asian Development Bank, The International Bank for Reconstruction and Development/The World Bank, and Japan Bank for International Cooperation Asian Development Bank 6 ADB Avenue Mandaluyong City, 1550 Metro Manila Philippines Telephone: +63 2 632 4444 Internet URL: www.adb.org E-mail: information@adb.org The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 USA Telephone: 1-202-473-1000 Internet URL: www.worldbank.org E-mail: feedback@worldbank.org Japan Bank for International Cooperation 4-1, Ohtemachi 1-Chome, Chiyoda-ku, Tokyo 100-8144 Japan Telephone: 81-3-5218-3101 Internet URL: www.jbic.go.jp E-mail: https://www.jbic.go.jp/english/opinion/index.php All rights reserved. 1 2 3 4 08 07 06 05 The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Asian Development Bank or its Board of Governors or the governments they represent, the Executive Directors of the International Bank for Reconstruction and Development/World Bank or the governments they represent, or Japan Bank for International Cooperation. The Asian Development Bank, Japan Bank for International Cooperation, and World Bank do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the Asian Development Bank, Japan Bank for International Cooperation, or World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The Asian Development Bank, The International Bank for Reconstruction and Development/World Bank, and Japan Bank for International Cooperation encourage dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. ISBN-10: 0-8213-6162-7 ISBN-13: 978-0-8213-6162-7 e-ISBN: 0-8213-6163-5 DOI: 10.1596/978-0-8213-6162-7 Library of Congress Cataloging-in-Publication Data has been applied for. Contents Countries Covered by This Study xi Foreword xiii Acknowledgments xv Abbreviations and Acronyms xvii Executive Summary xxi 1. The Infrastructure Challenge The economic story The spatial and demographic story The environmental story The political story The funding story Annex 1: Estimation of infrastructure needs 1 4 12 20 24 29 43 2. Inclusive Development Development, inclusiveness, and infrastructure What is so different about infrastructure anyway? Connecting growth, poverty reduction, and investment through infrastructure Making the links: Infrastructure, trade, and logistics Focus on Vietnam: Infrastructure and inclusive development 49 49 51 3. Coordination Infrastructure is hard to do The “high-flying geese” theory of infrastructure Coordinating infrastructure levels Coordinating infrastructure through subnational government.